Shares of Kootenay Silver (CVE:KTN) shot up over 11 per cent Wednesday, having risen nearly as much over the past week, as investors look forward to more drill results from its Promontorio silver project, where it recently hit values of as high as 199 grams per tonne (g/t) silver.
Late last month, the company unveiled the results from the first 8 holes of the resource expansion program at Promontorio, located in Mexico, which it said showed that potential to the north may be better than previously thought. All holes were drilled outside of the current resource boundaries - at intervals of 50 to 100 metres.
The 30,000 metre drill program is the largest drill campaign conducted on Promontorio so far, and Kootenay said it is designed to "substantially increase" the overall size of its contained silver resource and to fast track the path to a production decision.
A preliminary economic assessment (PEA) study is planned for the end of the drilling campaign, and will include an updated resource estimate with results from the latest drilling. The report will then form the basis for the pre-feasibility study at Promontorio.
Notable holes from last month included DH 121-12, which returned 62 g/t silver equivalent over 47 metres, including 94 g/t silver equivalent over 17 metres.
A number of high grade silver equivalent intercepts, including 152 g/t over 5 metres, were found within 20 metres of 36 g/t silver equivalent in hole DH 124-12.
Meanwhile, hole DH 125-12 returned 119 g/t silver equivalent over 6 metres and 94 g/t over 14 metres, including 199 g/t over 3 metres.
In August this past year, Kootenay announced it had nearly tripled the resource size at Promontorio.
In total, the updated measured and indicated mineral resource contains an estimated 61.679 million ounces of silver equivalent, with another 14.469 million ounces of silver equivalent categorized as inferred.
Kootenay's shares were up 11.76 per cent as at about 11:30 a.m. EDT, trading at 95 cents.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.